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Dear Friends,

Skilling through incentivising!

In a country with one of the world's youngest workforces, India's success story hinges largely on how well it transforms its demographic advantage into a skilled and employable population. The Apprentices Act, 1961, was a bold legislative step toward that ambition-intended to facilitate a structured transition from education to employment by integrating hands-on training with theoretical instruction. More than six decades later, however, the law's lofty ideals often clash with the realities of its practice.

Reforms in recent years, such as the Apprentices (Amendment) Acts of 2014 and 2019, and the launch of schemes like the National Apprenticeship Promotion Scheme (NAPS), have aimed to liberalize and incentivize the apprenticeship landscape. These moves have opened doors for private sector involvement, simplified registration processes, and enhanced financial support for stipends.

Yet, despite these changes, India continues to underperform on apprenticeship utilization. Less than 0.1% of our workforce is currently engaged in formal apprenticeship programs-far behind countries like Germany or Japan. The causes are structural, administrative, and sometimes ethical. Many enterprises still view apprentices not as trainees, but as cheap, disposable labour. The stipends are often meagre, training minimal, and compliance with learning mandates superficial. Instances of misuse-where apprentices are rotated out every few months to avoid regular employment-are not uncommon.

As we talk of skilling India, it is time to ask tough questions. Is the Apprentices Act still fit for purpose in a post-pandemic, digital-first economy? Are we investing enough in monitoring quality and outcomes rather than just enrolment numbers? Is there a robust bridge between vocational institutions and industries, especially MSMEs? And most importantly, are we ensuring that an apprenticeship is a platform for learning-not a loophole for exploitation?

The way forward calls for a multi-stakeholder approach. We need reforms that make apprenticeship engagement easier for employers but also hold them accountable for the training imparted. Skilling frameworks must be aligned with real-time industry demand, while integrating equity, dignity, and rights into their core. Regulatory bodies need to ensure on-ground compliance.

India doesn't just need more apprentices-it needs meaningful apprenticeships.

This Issue cover story is an attempt to uncover the various facets of Apprenticeship in India from legal as well as ground perspective.
If you like it let us know. If not, well, let us know that too.

Happy Reading

From India, Delhi
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